No fuel levy, RAF levy increases for 2022/23 There will be no increase in either the general fuel levy or the Road Accid
Posted: Wed Apr 27, 2022 12:12 pm
No fuel levy, RAF levy increases for 2022/23 There will be no
increase in either the general fuel levy or the Road Accident Fund
(RAF) levy in 2022/23. The National Treasury has, instead, turned
its focus to providing an overall R5.2-billion in tax relief, in
support of households and the economy. Fuel prices in South Africa
exceeded R20 a litre for inland unleaded petrol for the first time
in December 2021 owing to higher crude oil prices and exchange rate
depreciation. Finance Minister Enoch Gondongwana said on February
23 that the higher prices had put pressure on the cost of
transport, food and other goods and services. The general fuel levy
stands at R3.85 per litre of petrol and R3.70 per litre of diesel,
while the RAF levy is currently R2.18 per litre of petrol and
diesel. Godongwana explained that to support consumers and the
economic recovery, no increases will be made to the general fuel
levy on petrol and diesel for 2022/23, providing tax relief of
R3.5-billion. In combination with the zero increase in RAF levy,
these changes will ensure that fuel taxes as a percentage of the
price of fuel are below 40%. The last time that the fuel price was
not increased due to a change in either the general fuel levy or
the RAF levy was in 1990. Godongwana said a review of all aspects
of the fuel price was needed and, to this end, teams have begun to
engage in this critical work. In 2021/22, taxes accounted for on
average 34% of the price of petrol and 38% of the price of diesel –
a ratio that is below that of India and Mexico, and far lower than
the 60% that is common in Europe. The fuel levy remains unchanged
in 2022/23; however, due to expected growth in fuel sales volumes,
government revenue is expected to increase at an average annual
rate of 1.3%, from R44.7-billion in 2021/22 to R46.5-billion in
2024/25.
Briefly discuss the relationship between an increase in fuel
taxes and public social welfare as well as economic growth in South
Africa,
Provide an overview and trends analysis of fuel levies from 2000
– 2022 - students to use graphs and tables in this section •
Discuss the fuel tax increase's impact on the public social
welfare
• Discuss the fuel tax increase's impact on the economic growth
of S.A
• Does temporal relief on fuel tax suggested by the Finance
Minister have a positive impact on the economic growth
increase in either the general fuel levy or the Road Accident Fund
(RAF) levy in 2022/23. The National Treasury has, instead, turned
its focus to providing an overall R5.2-billion in tax relief, in
support of households and the economy. Fuel prices in South Africa
exceeded R20 a litre for inland unleaded petrol for the first time
in December 2021 owing to higher crude oil prices and exchange rate
depreciation. Finance Minister Enoch Gondongwana said on February
23 that the higher prices had put pressure on the cost of
transport, food and other goods and services. The general fuel levy
stands at R3.85 per litre of petrol and R3.70 per litre of diesel,
while the RAF levy is currently R2.18 per litre of petrol and
diesel. Godongwana explained that to support consumers and the
economic recovery, no increases will be made to the general fuel
levy on petrol and diesel for 2022/23, providing tax relief of
R3.5-billion. In combination with the zero increase in RAF levy,
these changes will ensure that fuel taxes as a percentage of the
price of fuel are below 40%. The last time that the fuel price was
not increased due to a change in either the general fuel levy or
the RAF levy was in 1990. Godongwana said a review of all aspects
of the fuel price was needed and, to this end, teams have begun to
engage in this critical work. In 2021/22, taxes accounted for on
average 34% of the price of petrol and 38% of the price of diesel –
a ratio that is below that of India and Mexico, and far lower than
the 60% that is common in Europe. The fuel levy remains unchanged
in 2022/23; however, due to expected growth in fuel sales volumes,
government revenue is expected to increase at an average annual
rate of 1.3%, from R44.7-billion in 2021/22 to R46.5-billion in
2024/25.
Briefly discuss the relationship between an increase in fuel
taxes and public social welfare as well as economic growth in South
Africa,
Provide an overview and trends analysis of fuel levies from 2000
– 2022 - students to use graphs and tables in this section •
Discuss the fuel tax increase's impact on the public social
welfare
• Discuss the fuel tax increase's impact on the economic growth
of S.A
• Does temporal relief on fuel tax suggested by the Finance
Minister have a positive impact on the economic growth